10-QPeriod: Q1 FY2025

Booking Holdings Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 29, 2025For Securities:BKNG

Summary

Booking Holdings Inc. reported its first-quarter 2025 financial results, showcasing robust revenue growth driven by a significant increase in merchant revenues, which continue to outpace agency revenues due to a strategic shift in booking models. Total revenues rose 7.9% year-over-year to $4.76 billion, with merchant revenues climbing 22.2% to $2.92 billion. This growth was supported by a 7.2% increase in total gross bookings, reaching $46.67 billion, largely fueled by a 21.0% surge in merchant gross bookings. The company experienced a 7.2% increase in global room nights, indicating sustained demand, particularly in Europe and Asia. Despite strong revenue performance, net income saw a substantial decrease to $333 million from $776 million in the prior year, primarily impacted by a significant increase in interest expense, largely due to debt discount amortization related to convertible senior notes and new debt issuance, as well as substantial foreign currency transaction losses.

Financial Highlights

49 data points
Beta

Revenue

$4.76B

Net Income

$333.00M

7.0% Net Margin

EPS (Diluted)

$0.40

Total Assets

$27.19B

Cash & Equivalents

$15.61B

Free Cash Flow

$3.16B

Financial Statements
Beta
Revenue$4.76B
Operating Expenses$3.70B
Operating Income$1.06B
Net Income$333.00M
EPS (Basic)$0.41
EPS (Diluted)$0.40
Shares Outstanding (Basic)821.00M
Shares Outstanding (Diluted)827.00M

Key Highlights

  • 1Total revenues increased by 7.9% year-over-year to $4.76 billion, driven by a strong performance in merchant revenues.
  • 2Merchant revenues saw a significant jump of 22.2% to $2.92 billion, reflecting the ongoing strategic shift towards a merchant booking model.
  • 3Total gross bookings grew 7.2% to $46.67 billion, with merchant gross bookings increasing by 21.0%.
  • 4Global room nights increased by 7.2%, indicating continued demand in key markets like Europe and Asia.
  • 5Net income decreased significantly to $333 million from $776 million in the prior year, largely due to higher interest expenses and foreign currency transaction losses.
  • 6The company authorized a new share repurchase program of up to $20 billion in the first quarter of 2025.
  • 7Marketing expenses increased by 10.4% to $1.78 billion, reflecting investment in driving growth amidst a competitive landscape.

Frequently Asked Questions

The primary driver of Booking Holdings' revenue growth in Q1 2025 is the substantial increase in merchant revenues, which grew by 22.2% year-over-year. This is largely attributed to the company's strategic shift towards processing transactions on a merchant basis, where Booking.com facilitates payments directly.

Net income decreased from $776 million in Q1 2024 to $333 million in Q1 2025 primarily due to a significant increase in interest expense, which rose by 196.8% to $649 million. This was driven by the amortization of debt discount on convertible senior notes and new debt issuances. Additionally, substantial foreign currency transaction losses of $437 million negatively impacted profitability.

The decline in agency revenues is a direct result of the company's strategic shift towards a merchant booking model. While agency revenues decreased by 11.3%, the growth in merchant revenues more than compensated for this, indicating a successful transition that is positively impacting overall revenue and gross booking growth.

For Q2 2025, Booking Holdings expects room night growth between 4-6%, gross bookings and revenue growth of 10-12% (reported) and 6-8% (constant currency), and an increase in operating income. For the full year 2025, the company forecasts mid to high single-digit growth in gross bookings and revenues on a constant currency basis, with an increase in operating income. However, they acknowledge heightened uncertainty in the geopolitical and macroeconomic environment.